AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Revenue and transaction growth surge.
- US and ANZ markets drive performance.
- Innovation and financial strength on display.
Zip Co Ltd (ASX:ZIP) has reported its financial outcomes for the six-month period ending December 31, 2024, marking a period of significant growth across multiple metrics. The latest results reflect a robust expansion in earnings and transactions, underscoring the company’s strategic progress in both domestic and international markets.
During the period, the company achieved a Cash EBTDA of A$67 million, reflecting a remarkable 117.1% increase from the previous half-year. Total Transaction Value (TTV) climbed to A$6.2 billion, up 23.9% year-on-year, while total income reached A$514 million, an increase of 19.8% compared to the corresponding period. Although the revenue margin slightly narrowed to 8.2% from 8.5%, this was largely due to a higher contribution from US operations, which now account for 70% of TTV. In addition, an 18.4% rise in total transactions to 45.7 million and improvements in cash gross profit and net transaction margin further demonstrate the company’s operational momentum.
In the United States, the company experienced a surge in performance, with TTV growing by 40.3% to US$2.9 billion during a record-breaking holiday trading period. Active customer numbers in the US increased by 400,000, reaching 4.2 million, while both average customer spend and transaction frequency experienced substantial rises of 33.1% and 29.8% respectively. Notably, in-store shopping accounted for 22% of the US TTV, exhibiting a 64% increase year-on-year. The expansion of the merchant network saw partnerships with notable names in travel, entertainment, and automotive sectors.
Closer to home in Australia and New Zealand, growth returned with TTV in the region registering a modest rise, and December data showing a 10% increase in Australian TTV. Portfolio yield in Australia improved to 18.6%, while the excess spread advanced to 6.9%, boosted by new collaborations with prominent retailers.
Product innovation continues to be a cornerstone of the company’s strategy. Enhancements to the ‘Pay-in-8’ instalment solution in the US, along with developments on the forthcoming ‘Pay-in-Z’ platform for additional payment flexibility, are set to drive future growth. Meanwhile, in ANZ, the rollout of Zip Plus and the launch of Zip Personal Loans in January 2025 are broadening the array of consumer financing options.
Financial discipline is evident as Zip repaid its corporate debt and increased cash reserves to A$195.5 million. Enhanced funding facilities both in the US and Australia further strengthen the balance sheet, positioning the company favorably for meeting its FY25 targets with improved operational leverage and sustained growth prospects.
